Airbus Unveils Study on the Potential of Sustainable Aviation Fuel to Support Economic Growth and Accelerate Canada's Climate Transition

Sustainable aviation fuel (SAF) could become a major driver of Canada's industrial and economic growth, while contributing to the global aerospace industry's aspirational goal to achieve 'net-zero carbon emissions by 2050', as set out by ATAG, IATA, and ICAO, according to a macroeconomic study conducted by Airbus and ICF, unveiled at the Farnborough International Airshow. The study outlines the requirements for SAF to meet 40% of Canada's aviation fuel demand by 2040, quantifying both the policy support required and the resulting economic opportunities for Canada.

Between 2026 and 2040, the development of a Canadian SAF value chain could generate an estimated $32 billion contribution to the country's GDP. This growth would be accompanied by the creation of 140,000 jobs between 2026 and 2040 across the value chain, representing nearly one quarter of the current direct workforce in the oil and gas sector. Moreover, it would generate nearly $890 million per year in net disposable income for these Canadian households. These benefits would be felt across the country, from agricultural and forestry regions to major urban centres, contributing to economic diversification and the vitality of local communities.

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The lifecycle carbon emissions reductions enabled by SAF adoption could generate an additional estimated societal value of $19 billion through avoided carbon costs, based on the Government of Canada's methodology. The Social Cost of Carbon (SCC) has been adopted by Environment and Climate Change Canada (ECCC) to measure the additional economic impacts of an incremental increase in carbon emissions.

In a context where a significant share of fuel consumed in Canada is imported, developing a domestic SAF value chain is also a matter of energy sovereignty and economic resilience. Domestic production would help reduce reliance on foreign markets and mitigate exposure to geopolitical fluctuations.

Without an increase in domestic capacity, Canada's reliance on biofuel imports could exceed 65% by 2030 to meet projected demand of 8.5 billion litres. This broader vulnerability would heighten energy security risks for the sector, which already relies on foreign suppliers for approximately 35% of its conventional aviation fuel.

This opportunity comes at a time when the international landscape is evolving rapidly. As incentive policies, particularly in the United States, are already accelerating investment and resource mobilization, Canada also has significant assets that could position it among the leaders in this industry, including abundant natural resources, industrial expertise and recognized leadership in the aerospace sector.

Airbus reaffirms its commitment to accelerating the development of a viable, accessible and affordable SAF market to help reduce the aviation sector's reliance on fossil fuels. The company is positioning itself as a catalyst within the ecosystem by fostering industrial partnerships, supporting SAF deployment in its own operations and helping mobilize stakeholders across the value chain.

Airbus looks forward to continuing its constructive collaboration with government partners, alongside the Canadian Council for Sustainable Aviation Fuels (C-SAF). Predictable and complementary incentives will be critical to attracting investment and enabling the development of a competitive and viable SAF value chain over the long term. By aligning these industry initiatives with supportive public policy, Airbus aims to contribute domestic SAF production, ensure the availability of renewable fuels for the Canadian aerospace industry, and preserve the affordability of air travel.

Consult the full report on our website.

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Sustainable aviation fuel (SAF) is a synthetic fuel. In order to be considered sustainable, it must be made from renewable sources or feedstocks, which could include used cooking oils, fats, plant oils, or municipal, agricultural and forestry waste. It must also meet a set of stringent sustainability requirements (covering the full chain of custody) including regulations set by ICAO's *CORSIA** scheme or the EU Renewable Energy Directive (RED). These requirements include food security, water management and human rights considerations. For example, SAF certification bodies independently verify that feedstocks for SAF do not divert resources needed for food production. For more information visit our website.

While SAF and conventional kerosene emit the same amount of CO2 during flight, SAF can reduce lifecycle CO2 emissions by up to 80% compared to conventional jet fuel depending on the pathway used.

SOURCE Airbus